The effects of fiscal stimulus: Evidence from the 2009 cash for clunkers program

Atif Mian, Amir Sufi

Research output: Contribution to journalArticlepeer-review

87 Scopus citations

Abstract

We evaluate the impact of the 2009 Cash for Clunkers program on short-and medium-run auto purchases. Our empirical strategy exploits variation across U.S. cities in ex ante exposure to the program as measured by the number of "clunkers" in the city as of summer 2008. We find that the program induced the purchase of an additional 370,000 cars in July and August 2009. However, we find strong evidence of reversal; high clunker counties bought fewer autos in the 10 months after the program expired, which offset most of the initial purchases. We find no evidence of an effect on employment, house prices, or household default rates in cities with higher exposure to the program.

Original languageEnglish (US)
Article numberqjs024
Pages (from-to)1107-1142
Number of pages36
JournalQuarterly Journal of Economics
Volume127
Issue number3
DOIs
StatePublished - Aug 1 2012
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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